crusty, re NEM, also see GG
Evening stars and weak closes near recent highs, a pattern seen among several of the North American miners, see GG, below. Rather disturbing, I'll admit. Key number on GG in my opinion is $13.11, a number below which the pattern becomes most distributional....
Could be that rotation is having its effect where money is coming out of these higher valuation issues and moving to South African plays and of course the up and comers...securities like WHT and NXG come to mind.
The situation is somewhat analogous to the Feb top, where gold rose to its peak and the miners rolled over and went for a 20% decline...Many a trader's concern about a repeat is likely keeping lids on here....Gold needs to break out in some form of new dynamic....gap up of $5 that then extends, type of thing, (on commercial short covering or just a let up in selling?) ....to bring in more institutional and pubic buying....I suspect interest will continue to show a shift to the SA this coming week as I see talk that a government shake up there portends lower interest rates, hence a weaker currency.
gg
stockcharts.com[m,a]daclyyay[db][pb40!b200][vc60][iUb14!La12,26,9]&pref=G
Looking back....how many of us thought this pattern still had prospects to the upside....
stockcharts.com[m,a]daclyyay[d20020907,20030204][pb40!b200][vc60][iUb14!La12,26,9]&pref=G
look what happened...
stockcharts.com[m,a]daclyyay[d20020912,20030327][pb40!b200][vc60][iUb14!La12,26,9]&pref=G |
